Unocal acquires interest in Spirit Energy 76 Development

Unocal Corp. agreed to acquire the outstanding limited partner interest in Spirit Energy 76 Development LP, a consolidated limited partnership holding interests in oil and gas producing properties in the Gulf of Mexico region.

July 25, 2003

By OGJ editors
HOUSTON, June 27 -- Unocal Corp. agreed to acquire the outstanding limited partner interest in Spirit Energy 76 Development LP, a consolidated limited partnership holding interests in oil and gas producing properties in the Gulf of Mexico region.

Unocal will pay the limited partner $252 million in exchange for the partnership interest that has been reflected as minority interest on Unocal's balance sheet. The company expects to finalize the transaction by July 31.

The acquisition is part of Unocal program to use the company's available cash to prepay debt and other financings.

Without the acquisition, Financial Accounting Standards Board Interpretation No. 46 would have required Unocal to reclassify essentially all of the limited partner's investment as long-term debt on the company's balance sheet in the third quarter 2003.